Market Snapshot
| Study Period: | 2018-2027 |
| Base Year: | 2021 |
| Fastest Growing Market: | Asia-Pacific |
| Largest Market: | North America |
| CAGR: | >12 % |
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Market Overview
The virtual cards market is set to witness significant growth over the coming few years. The market would show robust growth, owing to factors such as the increasing adoption of digital platforms and online payment modes. Virtual cards are gaining popularity as they eliminate the hassle and expense of processing paper and managing physical cards. The pandemic has pushed the demand for touchless payment solutions where plenty of new contactless spending possibilities are entering the market.
Owing to the outbreak of COVID 19, digital payment volumes received a boost through the Government that is encouraging digital payments across various countries. Thus, the demand for virtual cards is expected to propel in the coming years. Virtual cards are emerging as a popular and easily deployable solution. B2B expenditure is expected to make up 80% of the virtual card market by 2025, as reported in the B2B Workforce Spend Playbook, a PYMNTS and Conferma Pay collaboration. That’s significant as the global virtual card market is expected to triple by 2025 and reach an estimated spend of more than $5 trillion.
A virtual prepaid card is a digital payment device that acts just like a physical prepaid card, except it is used for online purchases and phone orders. Credentials are randomly generated through a process called tokenization, and the cards come with built-in financial controls, allowing to fund the card for either single use or multi-purpose payments. Virtual prepaid cards improve the payment experience by making it safer, simpler, and smarter to make purchases online.
Scope of the Report
A complete background analysis of the Virtual Cards Market, which includes an assessment of the parental market, emerging trends by segments and regional markets, significant changes in market dynamics, and a market overview, is covered in the report. Virtual Cards Market is segmented by Product Type (B2B Virtual Cards, B2C Remote Payment Virtual Cards, B2C POS Virtual Cards), by End User (Consumer Use, Business Use), and by Regions (North America, South America, Europe, Asia Pacific, Middle East & Africa).
| Product Type | |
| B2B Virtual Cards | |
| B2C Remote Payment Virtual Cards | |
| B2C POS Virtual Cards |
| End User | |
| Consumer Use | |
| Business Use |
| Regions | |
| North America | |
| South America | |
| Europe | |
| Asia Pacific | |
| Middle East & Africa |
Key Market Trends
Rising Online Transactions is Augmenting the Virtual Cards Market
The cashless payment methods are rapidly evolving with ground-breaking innovations such as mobile wallets, peer-to-peer (P2P) mobile payments, real-time payments, and cryptocurrencies. Due to enhanced broadband connectivity, increasing mobile commerce, the emergence of new technologies such as Virtual Reality, Artificial Intelligence, and rapid digitization, billions of people have started embracing contactless payments in both developed and emerging countries. Besides, surging e-commerce businesses, digital remittances, digital business payments, and mobile B2B payments are boosting the non-cash transaction ecosystem. In addition, as the global usage of smartphones, online payment modes, and online shopping increases as a result of urbanization, the need for virtual cards is likely to rise.
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Asia Pacific is Expected to Witness Highest Growth
Due to factors such as high smartphone manufacturing and expanding smartphone and internet penetration in the region, Asia Pacific is expected to be the fastest-growing region in the virtual cards market over the estimated period. Advancement in technology and increasing government initiatives for digital transformation is most likely to boost the overall growth of the Virtual Card Market. In 2021, consumer payments in China continued to see the acceleration of digital transformation from both industry players and the government, which is actively speeding up the establishment of a digital payments system. The People’s Bank of China was even cooperating with local governments to launch a series of digital currency trials across major cities this year, including Beijing and Shanghai.
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Competitive Landscape
The report covers major international players operating in the Virtual Cards Market. In terms of market share, the market is consolidated. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping new markets. Some major players in the Virtual Cards market are American Express Company, JPMorgan Chase & Co., Mastercard Incorporated, and many more.
Recent Development
- On 19th May 2022, Mastercard and fintech giant OPay announced a strategic partnership, which marks a significant boost for wider financial inclusion and economic prosperity by opening up digital commerce to millions of people across Middle East and Africa. The collaboration enables OPay consumers and merchants in the region to engage with brands and businesses anywhere across the globe, with a Mastercard virtual payment solution linked to the OPay eWallet.
- On April 29th 2022, American Express Company announced a collaboration with Billtrust, a B2B accounts receivable automation and integrated payments leader, to enable suppliers to streamline acceptance of American Express virtual cards.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Insights on impact of technology and innovation in Operation in Virtual Cards Market
4.5 Insights on Performance of Virtual Card Providers Globally
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 B2B Virtual Cards
5.1.2 B2C Remote Payment Virtual Cards
5.1.3 B2C POS Virtual Cards
5.2 End User
5.2.1 Consumer Use
5.2.2 Business Use
5.3 Regions
5.3.1 North America
5.3.2 South America
5.3.3 Europe
5.3.4 Asia Pacific
5.3.5 Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Market Concetration Overview
6.2 Company Profiles
6.2.1 American Express Company
6.2.2 JPMorgan Chase & Co.
6.2.3 Mastercard Incorporated
6.2.4 Alipay.com Co Ltd.
6.2.5 MineralTree Inc.
6.2.6 Skrill USA, Inc.
6.2.7 Fraedom Holdings Limited
6.2.8 Abine, Inc.
6.2.9 Billtrust, Inc.
6.2.10 ACI Worldwide Inc.*
*List Not Exhaustive7. MARKET OPPORTUNTIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
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Frequently Asked Questions
What is the study period of this market?
The Virtual Cards Market market is studied from 2018 - 2027.
What is the growth rate of Virtual Cards Market?
The Virtual Cards Market is growing at a CAGR of >12% over the next 5 years.
Which region has highest growth rate in Virtual Cards Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Virtual Cards Market?
North America holds highest share in 2021.
Who are the key players in Virtual Cards Market?
American Express Company, JPMorgan Chase & Co., Mastercard Incorporated, Alipay.com Co Ltd., MineralTree Inc. are the major companies operating in Virtual Cards Market.
